Invest
Clinton clean sweep a concern for markets
All eyes are on next month’s US election, but the possibility of a Trump presidency is not the only concern for international equity markets.

Clinton clean sweep a concern for markets
All eyes are on next month’s US election, but the possibility of a Trump presidency is not the only concern for international equity markets.

With Donald Trump’s candidacy for president of the United States called into question again last week, the possibility of a Hillary Clinton-led Democratic clean sweep has emerged.
However, this too could spell trouble for markets, according to AMP Capital chief economist Shane Oliver.
“Such a scenario would worry investors to the extent that it would make it easier for less business-friendly tax and regulation policies to be put in place that might weigh on health, energy and financial companies,” Mr Oliver said, with reference to the Democratic Party’s hopes it will retake both the Senate and the House of Representatives.
If Clinton does win in November, there will be an important lesson to heed, he told Nestegg.com.au. When Americans go to the polls on 8 November, many will not only be voting for their next president, they will also be choosing down-ballot candidates in the Senate and the House.
“What Brexit and the success of Trump indicate is scepticism amongst the electorate in the UK and the US of traditional economic rationalist policies, such as globalisation and economic deregulation. These policies have taken a bit of a toll on different groups, and the people who have been left behind are feeling a bit annoyed and that’s contributed to the success of Trump and the Brexit vote,” he said.
“Obviously governments need learn that they can’t let inequality rise forever [as] it can cause real problems.”
For much of the campaign, investors have been concerned about the possibility of a Trump presidency.
“A Trump victory, or anticipation of it, would be initially negative for shares on policy uncertainty and trade war worries, push up bond yields as the US budget deficit is likely to widen and US interest rates move higher and therefore positive for the $US,” Mr Oliver said.
However, the likelihood of the Democratic Party winning a majority in both the House of Representatives and the Senate remains small.
“The polls are clearly moving in Clinton's favour again, but it’s doubtful that it’s enough to generate a wave of support strong enough to see the Democrats take both houses of Congress,” Mr Oliver said.
“While there is a good chance the Democrats will gain a majority in the Senate, but not necessarily the 60 seat control, it’s hard to see them winning the 30 seats necessary to control the House.”

Property
House prices tipped to surge 30% on the back of cheap money
According to new documents released from the Reserve Bank of Australia, persistently low interest rates could push up property prices by as much as 30 per cent. ...Read more

Property
Double-digit price growth to stick around as ‘property boom’ arrives
According to leading indicators, Australia’s property boom officially began in November, following several slow months on the back of the COVID crisis, with double-digit price growth already logged ...Read more

Property
How to turn your ‘costly’ lifestyle investment into a money-making asset
Emotionally driven holiday home buyers are being advised to seek maximum rental income and depreciation benefits to make their investments viable. ...Read more

Property
Dutch e-commerce giant VidaXL ramping up Australian operations
Netherlands-based online retailer VidaXL is ramping up its operations in Australia, by launching the build of a brand new 81,000 sq m national distribution centre in Melbourne. ...Read more

Property
Invest in property or watch savings dwindle, expert warns
Money is cheaper than it’s ever been on the back of a favourable interest rate environment, compelling Aussies to shift away from other types of investment vehicles and into property investment. ...Read more

Property
Is 2021 a great year to buy property? Aussies think so
2021 is tipped to be one of the busiest years for property ever as money remains cheap and readily accessible, with a majority of Aussies agreeing that now is a good time to buy. ...Read more

Property
Young Aussies set their sights on home ownership in 2021
The COVID-19 pandemic has accelerated younger Australians’ desire to own their own home, despite affordability remaining a significant concern, new research has revealed. ...Read more

Property
HomeBuilder stimulus causing surge in new houses: ABS
Housing schemes such as HomeBuilder and historically low-interest rates are causing a surge in new properties being built in Australia, official stats have shown. ...Read more

Property
House prices tipped to surge 30% on the back of cheap money
According to new documents released from the Reserve Bank of Australia, persistently low interest rates could push up property prices by as much as 30 per cent. ...Read more

Property
Double-digit price growth to stick around as ‘property boom’ arrives
According to leading indicators, Australia’s property boom officially began in November, following several slow months on the back of the COVID crisis, with double-digit price growth already logged ...Read more

Property
How to turn your ‘costly’ lifestyle investment into a money-making asset
Emotionally driven holiday home buyers are being advised to seek maximum rental income and depreciation benefits to make their investments viable. ...Read more

Property
Dutch e-commerce giant VidaXL ramping up Australian operations
Netherlands-based online retailer VidaXL is ramping up its operations in Australia, by launching the build of a brand new 81,000 sq m national distribution centre in Melbourne. ...Read more

Property
Invest in property or watch savings dwindle, expert warns
Money is cheaper than it’s ever been on the back of a favourable interest rate environment, compelling Aussies to shift away from other types of investment vehicles and into property investment. ...Read more

Property
Is 2021 a great year to buy property? Aussies think so
2021 is tipped to be one of the busiest years for property ever as money remains cheap and readily accessible, with a majority of Aussies agreeing that now is a good time to buy. ...Read more

Property
Young Aussies set their sights on home ownership in 2021
The COVID-19 pandemic has accelerated younger Australians’ desire to own their own home, despite affordability remaining a significant concern, new research has revealed. ...Read more

Property
HomeBuilder stimulus causing surge in new houses: ABS
Housing schemes such as HomeBuilder and historically low-interest rates are causing a surge in new properties being built in Australia, official stats have shown. ...Read more